TEMISCAMING, QC, Dec. 8 /CNW Telbec/ -- Tembec today announced that it will put its newsprint mill in Pine Falls, Manitoba up for sale. The facility, which has an annual capacity of approximately 200,000 tonnes, has been idled since September 1, 2009 due to a labour dispute.
"We have examined a full range of options related to our continuing ownership of this facility and have concluded that it is in the best interest of Tembec and the employees of the Pine Falls mill that we exit that site," stated John Valley, Executive Vice President, Business Development and Corporate Affairs. "It is our hope to find a new owner for the site and we are prepared to work with all parties to facilitate a transaction. However, if the sales process is not successful or if it is not completed in a timely manner, we will consider other options, including a permanent closure of the facility."
As a result of the decision announced today, Tembec has informed the Province of Manitoba and the United Steelworkers that it is prepared to end the current lockout, subject to reaching an agreement on a limited number of local issues. The ending of the lockout will not, however, mean a resumption of operations. The Company has contacted the union through the USW to begin discussions on those issues, with the hope of achieving a timely resolution.
Tembec is a large, diversified and integrated forest products company which stands as the global leader in sustainable forest management practices. The Company's principal operations are located in Canada and France. Tembec's common shares are listed on the Toronto Stock Exchange under the symbol TMB and warrants under TMB.WT. Additional information on Tembec is available on its website at www.tembec.com.
This press release includes "forward-looking statements" within the meaning of securities laws. Such statements relate to the Company's or management's objectives, projections, estimates, expectations or predictions of the future and can be identified by words such as "will", "anticipate", "estimate", "expect" and "project" or variations of such words. These statements are based on certain assumptions and analyses made by the Company in light of its experience and its perception of future developments. Such statements are subject to a number of risks and uncertainties, including, but not limited to, changes in foreign exchange rates, product selling prices, raw material and operating costs and other factors identified in our periodic filings with securities regulatory authorities. Many of these risks are beyond the control of the Company and, therefore, may cause actual actions or results to materially differ from those expressed or implied herein. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.